MBKRsound | Master Terms of Service & Charitable Royalty Commitment
Last Updated: 2025 Jurisdiction: The Netherlands
- Corporate Identity and Mission
MBKRsound (“the Company”) is an independent record label and creative platform. The Company’s primary commercial objective is the production, distribution, and promotion of musical works to generate social impact through a Charity-First Royalty Model.
- The Charitable Royalty Commitment
2.1 Irrevocable Allocation: For every musical work (“Work”) released under the MBKRsound label, the Company commits a minimum of 70% of Net Royalties to one or more Registered Charitable Organizations (“Beneficiaries”). This allocation is a fundamental condition of the Company’s operations and cannot be waived or diluted by subsequent partner agreements.
2.2 Definition of Net Royalties: “Net Royalties” shall mean the gross revenue actually received by the Company from digital service providers (DSPs), physical sales, synchronization licensing, and public performance rights, less only the following direct costs:
- Third-party platform commissions (e.g., Spotify, Apple Music).
- Direct distribution fees and mandatory mechanical royalties.
- Applicable value-added taxes (VAT) or statutory withholding taxes.
2.3 Exclusion of Overhead: The Company expressly excludes internal overhead, discretionary marketing budgets, or general administrative costs from these deductions to ensure the maximum possible impact for the Beneficiary.
- Selection and Relationship with Beneficiaries
3.1 Criteria for Selection: Beneficiaries are selected at the Company’s sole discretion based on their status as registered non-profits with a focus on youth development, education, health, or social inclusion.
3.2 Legal Independence: The Company operates as an independent commercial entity. No partnership, joint venture, or agency relationship is created between the Company and any Beneficiary. Beneficiaries hold no creative control, editorial rights, or governance over the Company’s repertoire.
- Transparency and Reporting
4.1 Disclosure: The Company shall maintain a public record of the specific donation percentage and the designated Beneficiary for each Work on its official website (mbkrsound.com).
4.2 Verification: The Company maintains accurate books and records of all royalty statements and donation receipts. The Company commits to providing an Annual Impact Report summarizing aggregate donations.
- Contributor and Participant Agreements
5.1 Subordination of Interests: All artists, producers, and contributors (“Contributors”) acknowledge that their financial participation is drawn exclusively from the Remaining Pool (5% of Pool Royalties or otherwise agread with the artist) after the Charitable Allocation has been satisfied.
5.2 Binding Effect: By contributing to a Work released by the Company, Contributors explicitly waive any claim to the portion of royalties designated for the Beneficiary for live.
- Intellectual Property and Use of Marks
6.1 Creative Integrity: The Company retains all rights to the Master Recordings and artistic direction.
6.2 Beneficiary Trademarks: The use of a Beneficiary’s name or logo is for descriptive purposes to identify the recipient of funds. Such use is conducted in accordance with “fair use” principles or specific licensing agreements with said Beneficiaries.
- Limitation of Liability
The Company makes no representations regarding the tax-deductibility of any indirect contributions by fans or listeners. The Company’s liability to any third party is limited to the faithful transfer of the allocated Net Royalties to the designated Beneficiary.
- Perpetual Commitment
This Charitable Royalty Commitment shall remain in effect for the full duration of the copyright of the Work and shall be binding upon any successors, assigns, or purchasers of the Company’s catalog.
- Governing Law and Jurisdiction
These Terms are governed by and construed in accordance with the laws of The Netherlands. Any disputes arising from these Terms shall be subject to the exclusive jurisdiction of the competent courts of the Netherlands.
- Contact
For inquiries regarding royalty distribution or verification: Email: legal@mbkrsound.com